Distribution Of Distribution And Distribution Essay

1754 Words Apr 2nd, 2015 null Page
Distribution System –
Export pricing is substantially determined by the channels of distribution chose by the exporters (Cavusgil 1988, Mühlbacher et al 1999). Their finding is consistent with that of Stöttinger (2001) that the decision to standardize or adapt the port pricing strategy depends on the channels of distribution selected by the exporters. Sousa and Bradley (2009) find that the degree of price adaptation is considerably influenced by the level of similarity in the distribution infrastructure between the home export markets. In a country characterized by complicated and long distribution channels, the additional costs associated with distribution will be higher than that with short distribution channels
Since the distribution costs considerably influence the total cost of exporting, and the costs and margins of distribution channels vary among countries, the more an exporter needs to adapt its distribution channel in the global market, the greater will be the variations in the export prices (Sousa and Bradley 2009). The export price escalates when the international distribution channels of the exporter are lengthy and dynamic (Cavusgil and Zou 1994). Kotabe and Helsen (2001) insist that exporters should maintain their price because the presence of a large number of intermediaries in the distribution channel escalates the price above distribution channel. When an export adapts distribution channel involving a greater number of intermediaries, additional…

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